Small businesses launch new Trump tariff challenge

July 27, 2026 - 20:46

A coalition of small business owners has filed a fresh lawsuit against the Trump administration's tariff policies, arguing the import taxes are causing severe financial harm and exceed the president's constitutional authority. The legal action, brought in federal court, represents the latest attempt to block the sweeping tariffs on goods from China and other trading partners.

The plaintiffs include family-owned manufacturers, retailers, and importers who say the tariffs have forced them to raise prices, cut jobs, or absorb crushing losses. One owner of a hardware supply company said the 25% levy on steel and aluminum has doubled his costs, making it impossible to compete with larger firms. Another, a boutique clothing retailer, reported losing 40% of her profit margin due to tariffs on textiles.

The lawsuit argues that President Trump overstepped his powers by using a 1970s-era trade law, the International Emergency Economic Powers Act, to impose the tariffs without congressional approval. Legal experts say the case sets up another major test of executive authority over trade, following previous court rulings that both upheld and struck down parts of Trump's tariff agenda. The White House has defended the tariffs as necessary to protect American industries and national security. A hearing is expected within weeks.